Why Dividend Growth Investors Should Keep an Eye on Accenture

Accenture plc (NYSE:ACN) is one of the 10 Technology Dividend Aristocrats to Buy in 2025.

Accenture plc (NYSE:ACN) is a multinational tech company that offers information technology services and management consulting. The company is sometimes overlooked by dividend growth investors due to its broader focus on tech solutions. However, the company boasts a strong track record of dividend growth, which may appeal to growth-oriented investors seeking consistent returns.

As of now, Accenture plc (NYSE:ACN)  pays a quarterly dividend of $1.48 per share, following a substantial 14.7% increase in December 2024. This sharp rise was supported by the company’s solid cash position, which it anticipates will remain stable going forward. In fact, Accenture had already raised its dividend by 15.5% in 2022 and 15.2% in 2023. Over the past five years, its average annual dividend growth rate stands at 8.2%, which is a notable figure within the tech sector. This reflects the company’s commitment to gradually increasing shareholder returns.

Looking at its financials, Accenture plc (NYSE:ACN)’s cash flow further supports its dividend strategy. In the latest quarter, it posted $3.68  billion in operating cash flow and $3.52 billion in free cash flow. The company’s quarterly dividend payments amounted to $924 million. With expectations for even stronger free cash flow this year, the recent dividend hike appears well-supported. Accenture has consistently paid dividends since 2005, and its five-year average payout ratio of 40% suggests there’s room for continued growth without compromising financial stability.

While we acknowledge the potential of ACN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure. None.